


A COMPILATION OF THE 
LAWS GOVERNING THE 
INDIANA UNIVERSITY 



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A Compilation of the Laws Governing 
the Indiana University 



By GEORGE L. REINHARD, Dean of the School of Law 



I. CONGRESSIONAL ACTION 

§ 1. Public Lands Donated by the United States Government and Ac- 
cepted by the People of Indiana. — In pursuance of Congressional 
legislation in 1804, certain public lands in the then Territory of 
Indiana were set apart for the endowment of an institution of 
learning. By the Enabling Act of April 19, 1816, of the National 
Legislature, prescribing the conditions upon which the Territory 
of Indiana was to be admitted into the Union as a State, an 
additional township of the public lands was set aside and vested 
in the General Assembly of the State to be appropriated solely 
for the use of a seminary of learning. By the ordinance accept- 
ing the Enabling Act the people of Indiana pledged themselves 
to carry out in good faith all the provisions of such Enabling 
Act, including, of course, the use of such lands for the purpose 
(substantial) for which it was set apart by Congress. (See Poor's 
Charters and Constitutions, 497-512.) 

The two Seminary townships containing this land were lo- 
cated, the one in what is now Gibson County, in 1804, and the 
other in what is now Monroe County, in 1816. Subsequently 
these lands were turned over by the General Assembly of the 
State to the institution established in 1820 by the name of the 
"Indiana Seminary." 

(1) 



2 INDIAJfA ITNIVEKSITY 

II. CONSTITUTIONAL PROVISIONS 

§2. The Constitution of 1816.— To keep the faith previously 
pledged to the Government of the United States in the ordinance 
of 1816, in accepting the portion of the public domain above 
referred to for educational purposes, the people of Indiana placed 
in their first Constitution— that of 1816— the following provisions: 

ARTICLE IX. 

Section 1, Knowledge and learning, generally diffused through 
a community, being essential to the preservation of a free gov- 
ernment and spreading the opportunities and advantages of edu- 
cation through the various parts of the country, being highly 
conducive to this end, it shall be the duty of the General Assem- 
bly to provide by law for the improvement of such lands as are 
or hereafter may be granted by the United States to this State 
for the use of schools, and to apply any funds which may be 
raised from such lands, or from any other quarter, to the accom- 
plishment of the grand object for which they are or may be 
intended: But no lands granted for the use of schools or semi- 
naries of learning shall be sold by authority of this State, prior 
to the year 1820; and the moneys which may be raised out of 
the sale of any such lands, or otherwise obtained for the purposes 
aforesaid, shall be and remain a fund for the exclusive purpose 
of promoting the interest of literature and the sciences, and for 
the support of seminaries and public schools. The General As- 
sembly shall, from time to time, pass such laws as shall be cal- 
culated to encourage intellectual, scientifical and agricultural im- 
provement by allowing rewards and immunities for the promo- 
tion and improvement of arts, sciences, commerce, manufacturing 
and natural history, industry and morality. 

Sec. 2. It shall be the duty of the General Assembly, as soon 
as circumstances will permit, to provide by law for a general 
system of education, ascending in a regular gradation from town- 
ship schools to a State University, where tuition shall be gratis, 
and equally open to all. 

§3. The Constitution of 1851. — The people of Indiana adopted 
their present Constitution in the year 1851. In it is contained 
the following provision: 



COMPILATION OF LAWS 



ARTICLE VIII. 



Section 1. Common Schools.— Knowledge and learning, gen- 
erally diffused throngliout a community, being essential to tlie 
preservation of a free government, it shall be the duty of the 
General Assembly to encourage, by all suitable means, moral, 
intellectual, scientific and agricultural improvement, and to pro- 
vide by law for a general and uniform system of common schools, 
wherein tuition shall be without charge, and equally open to all. 



III. LEGISLATIVE ENACTMENTS 

(a) As to Trustees 

§ 4. Name of the Institution.— By an act of the General Assembly 
of Indiana, approved January 20, 1820, there was established and 
located at Bloomington, an institution of learning under the name 
of the "State Seminary." (Acts 1820, p. 82.) An act of the Gen- 
eral Assembly approved January 24, 1828, provided for the estab- 
lishment, in the place of the Seminary, of a college "for the 
education of youth in the American, learned and foreign lan- 
guages, the useful arts, sciences and literature, to be known by 
the name and style of the Indiana College." (Acts 1828, p. 115.) 
By a subsequent act, approved February 15, 1838, there was 
created and established, as the successor of Indiana College, a 
University, "for the education of youth in the American, learned 
and foreign languages, the useful arts, sciences (including law 
and medicine) and literature, to be known by the name and style 
of the Indiana University." (Acts— Local Laws— 1838, p. 294.) 
By the act of the General Assembly passed in 1852 it was also 
provided that the institution established by an act entitled "An 
act to establish a college in the State of Indiana," approved Janu- 
ary 28, 1828, be recognized as the University of the State. (1 R. S. 
1852, p. 50 L Burns R. S. 1901, §6053.) 

§5. Trustees — Number of. — The number of persons composing 

the board of trustees of the State Seminary was six. The first 

trustees were named in the statute establishing the Seminary. 

(Act approved January 20, 1820, §1; Acts 1820, p. 82.) The trustees 

(2) 



4 . INDIANA UNIVERSITY 

of Indiana College, as provided in the law creating that institu- 
tion, were fifteen in number, but none were named in the act. 
(Act approved January 24, 182S, §2; Acts 1828, p. 45.) The board 
of trustees provided for by the act of 1838, for the establishment 
of a university in the State of Indiana, was required to consist 
of tweuty-one persons, without naming the first to serve. By 
the act of February 15, 1841, the number of trustees was fixed at 
eight, and it was provided that not more than one shall reside 
in the same county, excepting the county of Monroe, from which 
two may be selected. (Acts 1855, p. 201; Burns R. S. 1901, §6054.) 
This provision as to the number and location of the trustees is 
still in force. 

§6. Corporate Name of Trustees.— Though the legislature has 
officially named the institution the "Indiana University," this is 
not the corporate name. It is specially declared that the trustees 
and their successors in office are constituted a body politic, with 
the style of the "Trustees of Indiana University," and it is by 
this name, and no other, that the institution may sue and be 
sued and perform such corporate acts as have been delegated 
to it, either expressly or by implication. (Acts in force March 
3, 1855, §2; Acts 1855, p. 201; Burns R. S. 1901, §6054.) 

§ <r. Powers Granted to the Board of Trustees.— The board of trus- 
tees are made a body politic, with the stjde of "The Trustees 
of Indiana University," in that name to sue and be sued; to elect 
one of their number president; to elect a treasurer, secretary 
and such other officers as they may deem necessary, to prescribe 
the duties and fix the compensation of such officers; to possess 
all the real and personal property of such University for its 
benefit; to take and hold, in their corporate name, any real or 
personal property for the benefit of such University; to expend 
the income of the University for its benefit; to declare vacant 
the seat of any trustee who shall absent himself from two suc- 
cessive meetings of the board, or be guilty of any gross immo- 
rality or breach of the laws of the institution; to elect a presi- 
dent, such professors and other officers for such University as 
shall be necessary, and prescribe their duties and salaries; to 
prescribe the course of study and discipline and price of tuition 
in such University; and to make all by-laws necessary to carry 



COMPILATION OF LAWS 5 

into effect the powers hereby conferred. (Act in force March 3, 
1855. §2; Acts 1855, p. 201; Burns R. S. 1901, §6054.) 

§8. Modification of Powers 'oy Recent Legislation.— The General 
Assembly of Indiana, in 1901, appropriated the sum of §100,000 
to the University, to be used for a building for the study of the 
sciences. This appropriation was made on the express condition 
that the title to all the real and personal property be convej^ed 
by the trustees to the State of Indiana, for the use and benefit 
of the University, the conveyance to be approved by the Auditor 
of State upon the delivery to him of the deed for the same. (Acts 
1901, pp. 394, 397.) In compliance with these provisions the 
entire property of the institution has been -conveyed and trans- 
ferred to the State, and the title to the same is now held by the 
State of Indiana for the nse of the University. That the trustees 
in their corporate capacity still have power to receive and hold 
title to such other property as may be acquired by them by gift 
or otherwise, is doubtless true. Of course they retain all the 
other powers delegated to them, as shown in §7 above, 

§ 9. Change in Method of Selecting Trustees.— Until the year 1891, 
the trustees were chosen by appointment, but in that year the 
method of selecting them was changed by the legislature. Ac- 
cording to the law enacted by the General Assembly of that year, 
which remains in force, three of the trustees are elected by the 
alumni of the University, and five by the State Board of Edu- 
cation. (Acts 1891, p. 65, §§1, 2.) 

§ 10. Term of Service.— The term of service of each trustee is 
three years, but in order to avoid a complete change in trustees 
in any one year the law provided that a number of those first 
elected were to serve for a shorter period. (Acts 1891, p. 65, §3.) 

§11. Vacancies. — When vacancies occur in the board of trus- 
tees among the members elected by the alumni, such vacancies 
must be filled by election of the alumni, and when vacancies 
occur among the members elected by the State Board of Educa- 
tion, they must be filled by such board. (See Acts 1891, p. 65, §3; 
Burns R. S. 1901. §§6059-6060.) 



r; INDIANA UNIVERSITY 

§ 12. Registry of Alumni. — A registry of the name and address 
of each ahimnus of Indiana University residing in the State of 
Indiana is to be kept by the librarian of the University, who 
must correct such addresses when notified by the alumni to do 
so. (Act March 3, 1891, §4, Acts 1891, p. 65; Burns R. S, 1901, 
§6061.) 

§ 13. Who are Alumni, — The alumni of the University under the 
law, are those persons who have been awarded and on whom 
have been conferred any of the following degrees: Bachelor of 
Arts (A. B.), Bachelor of Letters (B. L.), Bachelor of Science 
(B. S.), Bachelor of Philosophy (B. Ph.), Bachelor of Laws (LL. 
B.), Master of Arts (A. M.), Master of Science (M. S.), Doctor 
of Philosophy (Ph. D.). (Act March 3, 1891, §4, Acts 1891, p. 65; 
Burns R. S. 1901, §6061.) 

§ 14. Nomination of Alumni Trustees.—Any ten or more alumni 
may file with the librarian of the University, on or before the 
first day of April of each year, a written nomination for the 
trustee or trustees to be elected by the alumni at the next Uni- 
versity commencement. Forthwith after such first day of April, 
a list of all such candidates must be mailed by the librarian to 
each alumnus according to his address. (Act of March 3, 1891, 
§5; Burns R. S. 1901, §6062.) 

§ 15. Form of Nomination of Trustees. —The following form may 
be used in the nomination of alumni trustees: 

" 2b the Librarian, Indiana University : 

" We, tho undersigned, alumni of Indiana University, being members of the 

classes and having been awarded the degrees set opposite our names, respectively, 

do hereby nominate for trustee to be elected by the alumni of the University at 

the next commencement, Edwin Corr, of Bloomington, Monroe County, Indiana: 

"(Signed) William H. Glascock, Greenfield, Ind., A. B. 1897. 

Jacob Mancil Clinton, Odon, Ind., LL. B, 1901. 

Charles Robert Clarke, Bloomington, Ind., A. B. 1897. 

Mary Effie Coleman, Rushville, Ind., A. B. 1901. 

Charles Newton Peak, Princeton , Ind., Ph. B. 1886. 

Minnie Blanch Ellis, Kentland, Ind., A. B. 1895. 

Albert Miller Wilson, Riley, Ind., A. B. 1900. 

Roy Oakley Pike, Knightstown, Ind., LL. B. 1900. 

James P. Porter, Mellott, Ind., A. B. 1898. 

Ara Ethel Hershman, New Albany, Ind., A. B. 1897." 



COMPILATION OF LAWS 7 

§16. Meeting: Of Alumni to Elect Trustees.— The statute requires 
the annual meeting of the alumni for the election of trus- 
tees to be held at the University, on the Tuesday before the 
annual commencement day, at the hour of 9:00 o'clocli a.m. 
At this meeting a trustee is to be elected to serve for three years 
from the first day of July of that year. The alumni are also 
to elect, at such meeting, any trustee or trustees the alumni 
may be entitled to elect, to complete any unexpired term or 
terms. (Act of March 3, 1901, §6; Burns R. S. 1901, §6063.) 

§ 17. Alumnus May Send Vote to Librarian.— Each alumnus resi- 
dent in the State of Indiana may send to the librarian of the Uni- 
versity, over his signature, at any time before the meeting of the 
alumni for the election of trustee or trustees, the vote for such 
ti'ustee or trustees which he would be entitled to cast if person- 
ally present at such meeting. The vote for such ti-ustee or trus- 
tees so sent to such librarian must be delivered by the latter to 
such meeting, where it is to be opened and counted at such elec- 
tion, together with the votes of those who are personally present; 
but no person may cast more than one vote. (Act of March 3, 
1901, §7; Burns R. S. 1901, §6064.) 

§ 18. Ballots. — No special form of ballot seems to be required 
by the law, nor is such ballot required to be printed. Any form 
will be sufficient which designates the particular election, the 
name of the candidate and the office. The ballot, if sent by mail, 
should be accompanied by a letter of the alumnus advising the 
librarian of his name, class and degree. Printed ballots are sent 
to any alumnus entitled to vote, by the librarian of the Univer- 
sity, on application to him. 

§ 19. Ballotingf. — At the meeting of the alumni all the ballots 
sent to the librarian and those cast personally are to be counted 
and canvassed, and the person or persons having the highest 
number of votes upon the first ballot are to be declared the trus- 
tee or trustees-elect. (Act of March 3, 1891, §7; Burns R. S. 1901, 
§6064.) 

§20. Number of Votes Required.— A proviso in the same section 
of the statute requires that the number of votes received by such 
person or by each of such persons, in order to constitute an elec- 



8 INDIANA UNIVEKSITY 

tion, must equal at least 50 per cent, of all the votes cast. If no 
person has received a majority on any ballot, the alumni person- 
ally present at such meeting must, from the two having the high- 
est plurality, elect a trustee, unless their plurality shall aggregate 
less than 50 per cent, of the votes cast, in which case there are 
to be included in the number of those to be voted for as many 
of those coming after such two highest in order of plurality as 
will bring the aggregate, of such pluralities of those to be voted 
for to 50 per cent, of the votes cast. (A'ct in force March 3, 
1891, §7; Burns R. S. 1901, §6064.) 

§21. Pay of Trustees. — The trustees of the University are entitled 
to receive, when employed, in the actual service of the University, 
the same pay as members of the General Assembly. (Act in force 
March 3, 1855, §5; Burns R. S. 1901, §6065.) 

§22. Annual Meeting of Trustees Required.— Tlie trustees are re- 
quired to meet annually, at the city of Bloomington, at least 
three days before the annual commencement of the University. 
(Act in force May 6, 1853, §3; Burns R. S. 1901, §6066.) 

§23. Quorum— Emergency— Temporary Appointments by Trustees 
and Faculty. — Five of the trustees constitute a quorum. In case 
an emergency is declared by the faculty, after there has been 
a called session of the board at which the other members failed 
to attend, the trustees residing in the county of Monroe may 
fill vacancies in the faculty of the University, and the board of 
trustees. In case there should not be three trustees in attend- 
ance upon such emergency, then those who are in attendance 
together with such members of the faculty as may be in attend- 
ance are required to fill such vacancies; but appointments thus 
made expire at the next meeting of the board. (Act in force 
May 6, 1853, §4; Burns R. S. 1901, §6067.) 

§24. Printing Annual Report.— The Governor of the State was 
required by the act cited below to order the printing annually 
of 5,000 copies of the annual report of the ti'ustees, 2,500 of which 
were to be for the use of the members of the General Assembly 
and 2,500 for the faculty. (Act in force May 6, 1853, §21; Burns 
R. S. 1901, §6084.) 



COMPILATION OF LAWS 9 

§25. Contents of Report. — Such report was to contain what is 
now included in the annual catalogue, with such other matters 
as may be deemed useful to the cause of education, connected 
with the University. (Act in force May 6, 1853, §22; Burns R. S. 
1901, §6085.) 

§26. Notice of Sessions.— The board of trustees, through its 
president, is to give at least one month's notice of the commence- 
ment of each session of the University, in at least one newspaper 
in the cities of Indianapolis, Louisville in the State of Kentucky, 
and New Orleans in the State of Louisiana. (Act in force May 
6, 1853, §23; Burns R. S. 1901, §6086.) [This provision is not re- 
garded as mandatory and has not been observed in late years.] 

§27. Buildingfs and Repairs.— The board of trustees are required 
annually to appoint a committee of that body to examine the Uni- 
versity buildings and grounds adjacent, who must report the 
kind and cost of repairs, if any are needed; and one of the mem- 
bers of the faculty is to be appointed to take care of such build- 
ings and grounds. (Act in force May 6, 1853, §24; Burns R. S. 
1901, §6087.) [The buildings and grounds have been for years 
under the supervision of special officers. The meaning of the 
above clause probably is that a member of the faculty shall have 
supervision of the janitor service.] 

§28. Normal Department. — Tlie trustees were required by the 
law to establish and maintain a normal department for instruc- 
tion in the theory and practice of teaching, free of charge, to such 
young persons, male or female, residents of the State, as might 
desire to qualify themselves as teachers of common schools within 
the State, under such regulations as such board of trustees might 
make in regard to admitting, to kind and time of delivery of. lec- 
tures in such department, and the granting of diplomas therein, 
and such regulations were to be incorporated in the annual report 
of the trustees to the General Assembly. (Act in force May 6, 
1853, §25; Burns R. S. 1891, §6088.) The functions of this de- 
partment are now performed by the State Normal School at 
Terre Haute, which has superseded the Normal Department of 
the University, although the University also maintains a Depart- 
ment of Pedagogy. (Acts 1865, p. 140; Burns R. S. 1901, §6034. 
et seq.) 



U» INDIANA UNIVEESITY 

§ 29. Agfricultural Department.— The trustees were also required 
to establish an Agricultural Department in the University, under 
the proper regulations, which were to be set forth in the annual 
report of the trustees to the General Assembly. (Act in force 
May 6, 1853, §26; Burns R. S. 1891, §§6088-6089.) There is now 
no Agricultural Department in the University, the necessity 
therefor having been obviated by the establishment of the Agri- 
cultural College at Purdue University. (See Acts 1865, p, 106; 
Burns R. S. 1901, §6167, et seq.) 



(bj Officers of Board of Trustees and Their Duties 

§30. What Officers Board Entitled to The officers of the board 

of trustees, as appears in §7, supra, are a president, a treas- 
urer and a secretary, and such other officers as the board naay 
deem necessary. The president of the board must be a member 
thereof, but the other officers need not be. The duties of these 
officers are such as the board may prescribe. (Acts 1855, p. 201; 
Burns R. S. 1901, §6054.) 

§31. Duties of Secretary.— The secretary of the board of trustees 
is required to keep a true record of all the proceedings of such 
board, and give certified copies thereof whenever required. He 
is also to keep an account of the students in the University ac- 
cording to their classes, stating their respective ages and places 
of residence, and a list of all graduates. (Act approved June 
17, 1852, §16; Burns R. S. 1901, §6079.) 

Note.— The Secretary is also the Registrar of the University. 

§32. Duties of Treasurer.— It is the duty of the treasurer of the 
University— 

(1) To keep true accounts of all moneys received into the 
treasury of the University, and of the expenditures thereof. 

(2) To pay out the same on the order of the board of trustees, 
certified by its secretary. 

(3) To collect the tuition fees due. 

(4) To make semi-annual settlements with the board of trus- 
tees. 



COMPILATION OF LAWS 11 

(5) To submit a full statement of the finances of the Univer- 
sity, and his receipts and payments, at each meeting of the board 
of trustees. 

(6) To submit his books and papers to the inspection of the 
trustees and visitors. (Act in force May 6, 1853, §17; Burns R. S. 
1901, §6080.) 

§ 33. Duty of Secretary and Treasurer to Report to State Superin- 
tendent. — It is the duty of the secretary and treasurer to report to 
the State Superintendent of Public Instruction all matters relat- 
ing to the University when by him required to do so. (Act in 
force May 6, 1853, §18; Burns R. S. 1901, §6081.) 

§ 34. Duty of President of University to Make Report.— By the law 

of 1901, the president of the University is required to make out 
and file with the Auditor of State a full and complete itemized 
account of all the receipts and expenditures for the year ending 
October 31. (See Acts 1901, p. 93.) 



fcj As to the Faculty 

§35. The Faculty— Powers of.— The statute provides that the 
president, professors, and instructors of the University shall 
be styled "The Faculty" of said University, and shall have 
power— 

(1) To enforce the regulations adopted by the trustees for 
the government of the students, to which end they may reward 
and censure, and may suspend those who continue refractory 
until a determination of the board of trustees can be had thereon. 
This provision contemplates that the board of trustees shall 
adopt all the rules and regulations for the government of the 
students, and that the faculty shall carry them into execu- 
tion. (See also §7 supra, and Burns R. S. 1901, §6054.) 

(2) To confer, with the consent of the trustees, such literary 
degrees as are usually conferred in other universities, and, in 
testimony thereof, to give suitable diplomas, under the seal of 
the university and signature of the faculty. (Act in force May 6, 
1853, §7; Burns R. S. 1901, §6070.) 



12 INDIANA UNITEBSITY 

§36. No Religious Qualification.— No religious qualifications are 
to be required from any student, trustee, president, professor 
or other ofiScer of such University, or as a condition for admission 
to any privilege in the same. (Act in force May 6, 1853, §8; 
Burns R. S. 1901, §6071.) 

§37. Sectarian Teachin§fs Prohibited. — No sectarian tenets are to 
be inculcated by any professor at the University. (Act in force 
May 6, 1853, §9; Burns R. S. 1901, §6072.) 

§38. Lectures by Faculty. — The statute provides as follows: 
One member of the faculty to be designated by a majority there- 
of, of which the secretary of the board shall be informed, shall, 
by himself or competent substitute, deliver a public lecture on 
the principles and organization of the University, its educational 
facilities (being careful not to disparage the claims of other insti- 
tutions of learning in the State), in at least fifteen different 
counties of the State, of which he shall give due notice; and in 
a vacation of less duration than one month, a member of the 
faculty, to be designated as aforesaid, shall deliver such a lecture 
in at least three different counties. A brief statement of such 
lectures shall, by the persons delivering them, be reported to 
the board of trustees annually, to be by them incorporated in the 
annual report to the General Assembly, but no two such lectures 
shall be delivered in the same county, until all the counties of 
the State have been lectured in. (Act in force May 6, 1853, 
§19; Burns R. S. 1901, §6082.) This section has remained practi- 
cally a dead letter, except in so far as the members of the faculty 
are called upon to deliver high school commencement addresses 
and do institute work. Such lecturers are also required to 
make such geological examinations, and collect such mineralog- 
ical specimens as they may be able to make and procure; a 
report whereof is to be made by them to the board of trustees, 
to be by the board incorporated in its annual report to the 
General Assembly; and these specimens, together with those that 
may be procured by voluntary donations, they are to deposit in 
a suitable room in the University buildings, to be fitted up for 
that purpose. (Act in force May 6, 1853, §20; Burns R. S. 1901, 
§6083.) 



COMPILATION OF LAWS 13 

§ 39. State Geologist.— The State Geologist, while he holds his 
office, is to be regarded as a member of the faculty of the Uni- 
versity, and he is required, in his reconnoissances, to collect dupli- 
cate specimens of mineralogy and geology and to deposit one 
set of the same in the cabinet of the University. (Act May 31, 
1861, §3; Acts special session 1861, p. 89; Burns R. S. 1901. §6093.) 

fdj The Board of l^isitors 

§40. How Constituted — Quorum— Supreme Court Jud§:es.— The 

Governor, Lieutenant-Governor, Speaker of the House of Repre- 
sentatives, Judges of the Supreme Court, and State Superintend- 
ent of Public Instruction are constituted a board of visitors of 
the University, any three thereof being a quorum. (The Judges 
of the Supreme Court being judicial officers, and the duties im- 
posed upon them by this law not being judicial in their nature, 
it is doubtful whether such judges can be required to perform 
the duties devolving on such board. There is no reason why, 
however, they may not act if they choose to do so. {Kat in force 
May 6, 1853, §13; Burns R. S. 1901, §6076.) 

§41. Visitors not Attending: to be Reported.— In case the board of 
visitors fail to attend the annual commencement exercises of the 
University, the president of the board of trustees is required to 
report such of them as are absent to the next General Assembly, 
in his annual report. (Act in force May 6, 1853, §14; Burns R. S. 
1901, §6077.) 

§42. Duties Of the Board of Visitors.— The duties of the board of 
visitors are as follows: To examine the property, the course of 
study and disciphne and the state of finances of the University, 
and recommend such amendments as it may deem proper, the 
books and accounts being open to its inspection. The board is 
required to make a report of its examination to the Governor, 
to be by him laid before the next General Assembly. (Act in 
force May 6, 1853, §15; Acts 1852, p. 504; Burns R. S. 1901, §6078.) 

§43. Legfislative Committee to Visit University.— By the law en- 
acted in 1897 the Governor is required, forty-five days prior to 
the meeting of any legislature, to appoint a nonpartisan com- 



14 INDIANA UNIVERSITY 

mittee of three members-elect of said legislatm-e, one from the 
Senate and two from the House, not more than two being of 
the same political party, and all being men of known probity 
and business ability, whose duty it is to visit the University 
and other State institutions during the forty-five days before the 
meeting of the legislature, investigate carefully their needs and 
necessities, and report the same to the legislature together with 
the amount of appropriation which they deem absolutely neces- 
sary to meet the wants of the Institution. (See Acts 1897, p. 16.) 
The General Assembly of 1901 passed another act relative to 
the same subject, providing in effect that such committee shall 
be appointed by the Governor within ten days after each gen- 
eral election and also providing for compensation for the meni- 
bers of such committee. (See Acts 1901, p. 75.) In other respects 
the provisions of the two acts are substantially the same. In 
each it is provided that no one shall be eligible to membership 
on the legislative committee who is interested financially, direct- 
ly or indirectly, in any of the proposed appropriations. (See 
"Centralizing Tendencies in the State of Indiana." by W. A. 
Rawles, pp. 199-200.) 

(e) Scholarships 

§44. By Trustees. — The law originally required the trustees to 
issue scholarships in payment of subscription moneys paid 
toward the construction of the buildings. These scholarships are 
no longer issued, all the present buildings having been erected 
at the expense of the State, by legislative appropriations. 

§ 45. Free County Scholarships.— One of the sections of the act 
of 1852 repeatedly cited above, required the trustees to provide 
for the tuition, free of charge, of two students from each county, 
to be selected by the board of county commissioners. (Act in 
force May 6, 1853, §10; Burns R. S. 1901, §6073.) The Supreme 
Court, in an early decision, ruled that this provision was applica- 
ble to the Law Department as well as to the other departments 
of the University. (McDonald v. Hughes, 7 Blkf. 525.) It was 
also provided in this connection that in case of a vacacny in any 
county scholarship, the secretary of the board should notify the 



COMPILATION OF LAWS ^ 15 

county auditor of such vacaiicy. (.Act iu force May 6, 1853, §11; 
Burns R. S. 1901, §6074.) At present no tuition is charged in 
any department of the University. The provisions as to county 
appointments are, therefore, of no importance. 



(f) Library 

§ 46. Transfer of Books. — The law enacted for the creation of a 
University library required the State Librarian to transfer from 
the State library to the library of the Indiana State University 
a- complete set of journals of both houses of the legislature, a 
copy of all laws enacted since the organization of the State, and 
of all reports from the several departments of State, and of 
those received from other States and from the general govern- 
ment, together with all other books and documents of which 
there were then duplicates in the State Library or duplicates of 
which should be thereafter received, if such boolis and documents 
could be spared without injury to the State Library and such 
transfer could be made without expense to the State. (Act ap- 
proved May 11, 1861, §2; Acts special session 1861, p. 88; Burns 
R. S. 1901. §6092.) 



(g) Maintenance of the University 

§ 47. The Various Funds.— The funds of the University by which 
it is supported and maintained are divided as follows: 

(1) The University (usually called college) fund. 

(2) The permanent endowment fund, 

(3) The "fraction of a mill fund," so called because it was 
first provided for by levying a tax of a fraction of a mill on each 
one hundred dollars' worth of the taxable property in the State, 

THE UNIVERSITY FUND 

§ 48. Proceeds of Seminary Land Sales— Donations.— By the law 
of 1852 it is provided that the University fund shall consist of 
the lands in Monroe and Gibson counties and the proceeds of 
sales thereof and all donations, for the use of such University, 



16 INDIANA UNIVEBSITY 

where the' same are expressly mentioned in the grant, or where 
in such grant the term "University" only is used; and it is also 
provided that the principal of such fund, when paid into the 
State treasury, is to be loaned, and the annual interest thereon 
applied to the current expenses of the University, upon warrants 
drawn on the Treasurer of State by the Auditor of State, upon 
the requisition of the board of trustees, signed by the president 
and attested by the secretary thereof. (Act in force May 6, 
1853, §28; Burns R. S. 1901, §6094.) 

§49. Auditor of State to Loan tlie Money.— It is made the duty of 
the Auditor of State to loan such funds upon real estate security. 
He is required duly to inform himself of the value of all real 
estate offered in pledge, and to be the judge of the validity of 
the title thereof; and any person applying for a loan must pro- 
duce to said auditor the title papers of such real estate, showing 
title in fee simple without incumbrance, and not derived through 
any executor's or administrator's sale or sale on execution. (Act 
in force May 6, 1853, §29; Burns R. S. 1901, §6095.) 

§ 50. Form of Mortgfagfe. — The mortgage to be taken to secure 
such loan mayJje in the following form, in substance: "I, A. B.,. 

of the county , in the State of Indiana, do assign and 

transfer to the State of Indiana, all (here describe the land). 

which 'I declare to be mortgaged for the payment of ■ 

dollars with interest at the rate of 6 per cent, per annum, pay- 
able in advance, according to the conditions of the note hereunto 
annexed." (As amended. Acts 1901, p. 342; Burns R. S. 1901, 
§6096.) 

§51. Form of Note. — The note accompanying the mortgage 
may be in substance as follows: "I, A. B., promise to pay to the 

State of Indiana on or before the day of , the sum 

of dollars, with interest thereon at the rate of 6 per cent. 

per annum, in advance, commencing on the day of , 

19—, and I do agree that in case of failure to pay any installment 
of said interest, the said principal shall become due and collect- 
able, together with all arrears of interest; and on any such failure 
to pay principal or interest when due, 5 per centum damages on 
the whole sum due shall be collected with costs, and th,e prem- 



COMPILATION OF LAWS 17 

ises mortgaged may be forthwith sold by the Auditor of State for 
the i3aymeRt of such principal sum, interest, damages and cost." 
(xis amended, Acts 1901, p. 342. Act in force May G, 1853, §31; 
Burns R. S. 1901, §6097.) 

§52. Rate of Interest. — The rate of interest on such loans is six 
per cent, per annum, in advance, payable annually; and it is 
provided in ^the statute that, on failure to pay any installment 
of interest when due, the principal shall forthwith become due 
and the note and mortgage may be collected. (As amended, 
Acts 1901,' p. 342; Burns R. S. 1901, §6099.) The rate of interest 
on the University fund loans is regulated by the special statute 
relating to the subject; statutes regulating interest on common 
school funds are not applicable unless the matter is specially 
mentioned. (State v. Carr, 111 Ind. 335.) 

§ 53. Priority of Mortgage. — All mortgages taken to secm-e loans 
from this fund must be considered as of record from the day of 
their execution, and have priority over all mortgages or con- 
veyances not previously recorded, and over all other liens not 
previously incurred in the county where the land lies. (Act in 
force May 6, 1853, §34; Burns R. S. 1901, §6100.) (The failure 
to record a mortgage will not affect the lien in the State.) 

A mortgage taken to secure a loan from the University funds 
or the endowment fund has precedence over all other liens, in- 
cluding taxes assessed after the execution of the mortgage or 
conveyance made or liens attaching after such time, and the 
purchaser of real estate, on the forecl'osure of such a mortgage, 
takes the same free from the claims of purchasers for such taxes 
so assessed or liens or transfers so accrued or made. The law 
which gives such priority is not beyond the power of the legis- 
lature, (t'isher v, Brov/er, Indiana Supreme Court, June 24, 1902 
—see 64 >^. E. Rep. 615; McElwaine-Richards Co. v. Gifford, Indi- 
ana Supreme Court, December 9, 1902— see 65 N. E. Rep. 576.) 

§54. Further Provisions of the Act of 1852 as to University Fund.— 
The provisions contained in the following sections taken from 
the Act in force May 6, 1853, with regard to the University fund 
have remained unchanged ever since the passage of that act, and 
are still in force: 



18 INDIANA UNIVEBSITY 

§ 55. Recording: of Mort§:a§:e.— It shall be the duty of the Auditor 
to have such mortgages recorded with due diligence, the expense 
whereof shall be, borne by the mortgagor, and may be retained 
out ojf the money borrowed. 

§56. Certificate as to Liens. — The person applying for a loan 
shall file with the Auditor the certificate of the clerk and re- 
corder of the county in which the land lies, showing that there 
is no conveyance of or incumbrance on said land in either of 
their oflices. 

§5f. Abstract of Title. — Such person shall also, before he re- 
ceives the money to be loaned, malie oath to the truth of an 
abstract of the title to his said land, and that there is no incum- 
brance, or better claim, as he believes, upon said land'. 

§58. Auditor's Duty.— On making any loan of such fund, the 
Auditor shall draw his warrant on the Treasurer, in favor of the 
borrower; and the Treasurer shall pay the same and charge it 
to the proper fund. 

§59. Payment. — All loans refunded and all interest shall be 
paid into the State treasury; and the Treasurer's receipt shall be 
filed with the Auditor of State, who shall give the payer a 
quietus for the amount thereof, and make the proper entries 
upon his books. 

§ 60. Satisfaction.^ — Whenever the amount due on any mortgage 
shall be fully paid, and the treasurer's receipt filed therefor, the 
Auditor shall indorse on the note and mortgage that the same 
has been fully satisfied, and surrender them to the person en- 
titled thereto; and on the production of the same, with such in- 
dorsement thereon, the recorder of the proper county shall enter 
satisfaction upon the record thereof. 

§61. Loans, How Collected. — When the interest or principal of 
any such loan shall become due and remain unpaid, the auditor 
shall proceed to collect the same by a suit on the note, or by sale 
of the mortgaged premises, or both, as to him may seem most 
advisable. He may, also, by proper action, obtain possession of 
the mortgaged premises. 



COMPILATION OF LAWS 19 

§62. Judgfinent. — In case of suit on such note, and judgment 
thereon, no stay of execution or appraisement of property shall 
be allowed. 

§63. Sale. — At the appointed time for such sale, the Auditor 
and Treasurer of State shall attend; and the Auditor shall make 
sale of so much of the mortgaged premises, to the highest bidder, 
for cash, as will pay the amount due for principal, interest, 
damages, and costs of advertising and selling the same; and 
such sales may be in parcels so that the whole amount required 
be realized. 

§ 64. When Auditor to Buy— Resale.— In case no one will bid the 
full amount due as aforesaid, the auditor shall bid in the same, 
on account of the proper fund; and as soon thereafter as may be, 
he shall sell the same to the highest bidder for cash, or on a credit 
for five years, interest being payable annually in advance. 

§ 65. Limit of Bid— Overplus.— The sale authorized in the pre- 
ceding section shall not be for less than the amount chargeable 
on such land, but if for more, the overplus shall be paid to the 
mortgagor, his heirs or assigns. 

§ 66. Statement of Sale. — The treasurer shall attend and make a 
statement of such sales, which shall be signed by the Auditor 
and Treasurer, and, after being duly recorded in the Auditor's 
office, shall be filed in the Ti'easurer's office; and such record or 
a copy thereof authenticated by the Auditor's or Treasurer's cer- 
tificate, shall be received as evidence of the matters therein 
contained. 

§67. Title in State, Without Deed.— Wlien any land is bid in by 
the State at such sale, no deed need be made therefor to the 
State; but the statement for such sale, and the record thereof 
made, as in the preceding section required, vests the title in the 
State, for the use of the fund. 

§ 68. Sale for Cash— Certificate.- In case of a sale of any such 
land to any person for cash, on the production of the Treasurer s 
receipt for the purchase-money, the Auditor shall give to the 
purchaser a certificate, which shall entitle him to a deed for 
said land, to be executed by the Governor of this State, and 
recorded in the office of the Secretary of State. 

(3) 



20 INDIANA UNITEBSITY 

^ 69. Sale on Credit. — In like manner, when any tract bid in by 
the State is sold on a credit, on the execution and delivery of a 
note and mortgage for the proper amount, as in other cases re« 
quired, the purchaser is entitled to a deed for the same, to be 
made as prescribed in the preceding section; and the transac- 
tion shall be entered, and appear upon the Auditor's and Treas- 
urer's books as a payment of the sum bid, and a reloan of the 
same to the purchaser, and the proper receipts and warrants 
shall pass therefor. 

§ TO. Fees and Damagfes.— For the services of the Auditor and 
Treasurer in conducting such sales, they shall be entitled to re- 
ceive 5 per cent, damages, chargeable on such sales. 

471. Accounts— Reports.— The Auditor and Treasurer shall keep 
fair and regular entries of the sums received and paid out on 
account of said fund, and shall include the same in their annual 
reports. 

§ 72. Accounts With Borrowers.— In addition thereto, the Audi- 
tor shall keep fair and regular accounts with the borrowers of 
said fund and shall report the names of borrowers with his 
annual report. 

§73. Interest, When Loaned.— Should any interest remain on 
hand, not wanted for the use of the University, the same may be 
loaned as other funds. 

§ 74. Unsold Lands. — The care and disposition of the lands be- 
longing to and for the use of said University, remaining unsold 
or unpaid for, shall be vested in the present commissioners of 
the reserved townships in the counties in which such lands may 
lie, who shall sell such as remain unsold, and such are forfeited 
for nonpayment, on such terms and under such regulations as the 
board of trustees of such University may provide; except that 
in every instance, the interest on the purchase money must be 
paid in advance. No purchaser, his heirs or assigns, shall have 
the right to cut down or destroy timber standing on such land, 
other than for the erection of fences and buildings thereon, or 
for firewood to be used on the premises, and in fairly improving 
it for cultivation. 



COMPILATION OF LAWS 21 

§ T5. Certificates of Payment—Patent by Governor.— On the first 
payment for any such land being made, the proper commissioner 
shall execute to the purchaser a certificate therefor; and on final 
payment, the original certificate shall be surrendered to the com- 
missioner, and by him filed away, and he shall give to the pur- 
chaser two final certificates, stating the whole amount of prin- 
cipal and the whole amount of interest paid, one of which cer- 
tificates shall be forwarded to the Auditor of State; and on pre- 
sentation of the other to the Auditor of State, if in all things 
correct, he shall countersign the same, which shall entitle the 
owner to a patent, to be issued by the Governor for the land so 
paid for. 

§r6. Leases. — Such coinmlssioiiers may, from time to time, 
lease any such unsold improved laud for a term not exceeding 
one year, until the same can be sold, and such leases shall be 
guarded against trespass and waste by proper covenants. 

§77. Commissioner's Report.— Such commissioners shall make 
an annual report to the board of trustees of the lands remain- 
ing unsold, such as are forfeited, such as are not fully paid 
for, the amount due, and money collected from sale, as interest 
or principal; which report shall be subscribed and sw^orn to by 
such commissioners, respectively, and be incorporated in the 
annual report of such board to the General Assembly. 

§78. Commissioner's Duty.— Money collected by such commis- 
sioners shall be paid over to the treasurer of the board, who 
shall execute to such commissioners two receipts therefor, 
each specifying the persons from whom such money was col- 
lected, and the amount thereof, whether for interest or principal, 
one of which receipts shall be immediately forwarded to the 
Auditor of State, to be by him used in his settlement with such 
treasurer. 

§79. Pay of Commissioners.— Such board shall regulate the 
compensation of such commissioners. 

§80. Patents, and Recording:.- Patents for land sold shall be 
made by the Governor and recorded in the office of the Secre- 
tary of State. 

(Act in force May 6, 1853, §§35-61; Burns R. S. 1901, §§6101- 
6016; 6117-6127.) 



22 INDIATv'A UNITERSITY 



PROVISIONS AS TO THE SALE OF UNIVERSITY LANDS FOR BENEFIT OF 

UNIVERSITY FUND 

§81. The Law of 1859.— In 1859 the General Assembly enacted 
a law which is still in force providing for the sale of the lands 
granted the State by the United States and placing the proceeds 
with other portions of the University funds. The sections of the 
act are as follows: 

§ 82. Appraisement of Lands.— The board of trustees of the In- 
diana University shall cause to be appraised the land granted 
by the United States to the State of Indiana for tlie use of the 
said University. 

§ 83. Where Filed and Recorded.— It shall be the duty of the said 
trustees, when the said appraisement shall have been made, to 
record the same upon their books, and to file a copy of the same, 
in the office of the Auditor of State, to be, hj said Auditor, record- 
ed in his office; and, also, to file copies of such appraisement of the 
lands in their respective counties in the office of the auditor of 
the county where the lands are situate, to be by said county 
auditor recorded. 

§ 84. Duty of County Auditors.— The auditor of each of the said 
counties shall, upon said appraisements being filed as aforesaid, 
and when required so to do by the said board of trustees, offer 
for sale so much of the said lands as may be within their re- 
spective counties at public auction, in the manner hereinafter 
mentioned. 

§ 85. Notice of Sale. — Notice of the time, place and conditions 
of such sale shall be given by publication, for four weeks suc- 
cessively in a newspaper published in such county, if any there 
be; if not, in a newspaper in this State published nearest thereto, 
and also by posting up written or printed notices thereof in 
three of the most public places in the township in which the 
lands are situated, and a like notice at the courthouse door at 
the county seat. 



COMPILATION OF LAAVS 28 

§ 86. Sale. — The place of sales of said land shall be at the cotfirt- 
house in each county of this State in which the said lands may 
be situated; and it shall be the duty of the county auditor to 
attend at the courthouse of his county at the time mentioned 
in the notice of the sale of said lands, and offer for sale at pub- 
lic auction, in legal subdivisions, and as near as practicable in 
half-quarter sections all the lands lying within his county; and 
for that purpose, he shall continue the sale from day to day. 
until all of the said lands shall have been offered for sale. 

§ 87. Terms of Sale. — The said lands shall be offered for sale at 
the time and place mentioned in such publication, and struck off 
to the highest bidder by said county auditor and county treas- 
urer, for a price not less than the appraised value thereof— one- 
fourth of the purchase money to be paid in hand, and the re- 
maining three-fourths at the expiration of ten years from the 
date of such sale, with interest annually in advance, at the rate 
of 7 per cent, per annum, upon the residue or deferred payment. 

§ 88. Private Entry. — When any of said lands, offered at public 
sale as aforesaid, shall remain unsold, they shall be subject to 
private entry with the county auditor and county treasurer of 
each county, upon the same terms and conditions as lands sold 
at public auction for a sum not less than the appraised value 
thereof, by any person applying to enter the same. 

§ 89. Certificate of Purchase.— When any sale shall be effected 
either at public or private sale as aforesaid, the county auditor 
shall give to the purchaser thereof a certificate, signed by him 
officially, bearing date on the day of sale, stating therein the 
name of purchaser, the tract or tracts of land purchased by him, 
the number of acres contained in said tract or tracts, the price 
per acre, and the whole sum for which the same was sold, the 
amount of principal paid, and the amount of principal paid in 
advance. 

§ 90. Certificate to be Registered.— Said certificates shall be regis- 
tered by the county auditor in a book provided for that purpose 
by entering in said book a correct copy thereof. 



24 INDIANA UNITER8ITT 

6 91. Certificate Assignable.— Said certificates of entry shall be 
evidence of title to the land therein mentioned in the persons 
in whose names they shall issue, or their assigns, and shall be 
assignable provided such assignments be aclinowledged before 
the auditor of the county wherein the land is situated (who is 
hereby authorized to take such acknowledgments), and recorded 
by said auditor in a book to be kept by him for that purpose; 
for which service the said auditor shall be entitled to receive a 
fee of fifty cents, to be paid by the assignor of such certificate. 

§92. Forfeiture. — On failure of any purchaser to pay any in- 
stallment of interest on said deferred payment of purchase- 
money when the same becomes due, the contract shall become 
forfeited, and the land shall immediately revert to the State for 
the use of said University and the county auditor shall forthwith 
proceed to sell the same in the manner and on the terms herein- 
before specified for said public sales. 

493. Surplus. — If, on such subsequent sale, such lands shall 
produce more than is sufficient to pay the sum owing therefor, 
with interests and costs, and 5 per cent, damages upon the 
amount due on such lands, the surplus shall, when collected, be 
paid over to the purchaser so forfeiting or his legal representa- 
tive. 

§ 94. Forfeiture, How Prevented.— At any time before such subse- 
quent sale, payment of the sum due, with interest for the delay, 
and all cost together with 2 per cent, damages upon the amount 
due such lands, shall prevent such sale and revive the original 
contract. 

§95. Land, How Redeemed.— The former owner of any lands 
sold as delinquent, his heirs, executors or administrators, may, 
at any time within one year after such resale, redeem the same, 
hy paying to the purchaser, his heirs or assigns, or to the county 
treasurer, for him or them, the amount of purchase-money paid 
by such purchaser, together with all subsequent payments, either 
of principal or interest, which such purchaser, or those claiming 
under him, may have made thereon, with interest at the rate 
of 10 per cent, per annum. 



COMPILATION OF LAWS 25 

^96. Security. — The board of trustees may require security 
from the purchaser at any of said sales, sufficient to prevent 
any waste being committed upon the lands by the removal of 
timber therefrom or otherwise. 

§9T. Suit for Waste. — In case of any forfeiture as aforesaid, 
the purchaser so forfeiting shall be liable, and may be sued, for 
unnecessary injury or waste done to such land, and damages to 
double the amount of such injury or waste recovered therefor- 
such suit to be begun and prosecuted by the auditor of the county 
where the land lies, in the name of the State of Indiana, for the 
use of the said University. 

§ 98. Patent, on Full Payment.— On full payment being made for 
any such land, the county auditor shall issue to the purchaser, 
or his assignee, a final certificate therefor; which, upon presenta- 
tion to the Auditor of State, shall entitle the owner thereof to a 
patent of the land described therein, to be issued by the Gov- 
ernor and recorded in the office of the Secretary of State. 

§ 99. Auditor's Report.— The comity auditor shall make, on the 
first Monday of each month, a report of his sales of said lands 
to the secretary of the board of trustees and to the Auditor of 
State, showing the date of sale, the description of the lands 
sold from time to time, the number of acres, the price per acre, 
the total amount each tract sold for, the amount of principal 
paid and the amount of interest paid and of all forfeitures, re- 
sales and redemptions thereof. 

§ 100. Treasurer's Report.— The county treasurer shall make a re- 
port, on the first Monday of each month, to the treasurer of the 
board of trustees of the University and to the Treasurer of State, 
of all moneys received by him, whether principal or interest, 
on account of such lands; and the said board of tiTistees shall 
require the books of their secretary and treasurer to be so kept 
as to exhibit the 4;rue condition of the accounts of all such pur- 
chases and sales of the said lands. 

§101. To Pay Money to State Treasurer.— The comity treasurers 
shall, on the first Monday of each month, pay over to the Treas- 
urer of State all sums received on account of the principal of 



26 INDIANA UNIVERSITY 

the purchase-money of said lands, and shall pay to the treasurer 
of the board of trustees of the University all sums received on 
account of the interest upon the purchase-money of the said lands. 

§102. Pay of Auditor and Treasurer.— The several county audi- 
tors and treasurers shall receive for their services the same com- 
pensation which may, from time to time, be allowed by law for 
similar purposes, in relation to the sale of common school lands, 
which shall be in full lor all their services required by this act. 

§ 103. Loans. — The Auditor of State shall loan out the principal 
of the moneys received from the several county treasurers on 
account of said sales in the same manner, and requiring the 
same security, as other portions of the University fund is now 
or may hereafter be required by law to be loaned out, and shall 
pay over to the treasurer of the board of trustees the interest 
derived from said principal, as a part of the income of the Uni- 
versity. The said Auditor of State shall, in his annual report 
to the legislature, report the names of the borrowers of the whole 
of the University fund, the amount borrowed by each, and the 
total amount on loan at the date thereof, and the amount of the 
suspended debt, if any, and in whose name forfeited. 

§ 104. Disposition of Proceeds.— Of the first proceeds of said sum, 
the said board of trustees shall be entitled to receive an amount 
equal to the amount of interest belonging to the University and 
loaned out as principal by the Auditor of State, as shown by 
the report of that officer to the General Assembly at the session 
of 1851-2, which shall be paid to the treasurer of the board of 
trustees of the University, and be applied, under the oath of 
the board of trustees, to the discharge of the debts growing out 
of the rebuilding of the University, and to the purchase of a 
suitable library, philosophical apparatus therefor, or proper fur- 
niture, in place of those destroyed by the burning of the Uni- 
versity. 

§ 105. Report of Sales.— The board of trustees shall, in their an- 
nual report, include a full statement of the amount of the sales 
of such lands, and the application of the funds received therefor, 
as reported to them from time to time. 



COMPILATION OF LAWS 27 

§ 106. One Trustee to Attend Sales.— One member of the board of 
trustees, to be clesignated by the board, shall attend to the sales 
of said lands, to prevent combinations injurious to the interest 
of the University; and he shall have the power to withdraw the 
said lands, or any portion thereof, from sale, when, in his judg- 
ment, the interest of the Univer&ity would be promoted, and 
shall have power and right to designate and determine in what 
subdivisions any of the said lands may be sold, at the time of 
said public sale, for the best interest of said University. 

§ lOT. No Member to Deal in the Lands.— No member of the board 
of ti'ustees of the University shall, either directly or indirectly. 
become the purchaser of anj of such lands at any sale made by 
the county auditor, or by private entry with the auditor after 
any forfeiture of purchase; and any sale made to any member 
of the board contrary to the provision of this section shall be 
absolutely void, and the purchase-money and interest which may 
have been paid thereon, shall be forfeited to the University 
fund. 

§108. Trustees to Get Information.— The commissioners of the^ 
University lands in Gibson and Monroe counties, and the several 
county auditors and treasurers of the counties in which any of 
the University lands are situated, shall furnish such information 
in relation to the lands and other property of the University, as 
may, from time to time, be required of them by the said board 
of trustees, and shall report annually the amount of unpaid 
purchase-money due on the lands sold for the use of said Uni- 
versity in each of their counties. (Acts 1859, p. 234; Burns R. S. 
1901, §§6132-6158.) 

PERMANENT ENDOWMENT FUND 

§ 109. Law Providing: for Endowment Fund.— In 1883 the General 
Assembly of Indiana passed an act providing for the creation 
of a permanent endowment fund, by a levy of a certain frac- 
tional portion of a cent on each one hundred dollars' worth 
of the taxable wealth of the State, and providing how the fund 
shall be applied and cared for by the State. The following 
sections contain the act referred to: 



28 INDIANA UNIVEBSITY 

§110. Indiana University Endowment.— There shall be assessed 
and coll'ected, as State revenues are assessed and collected, in 
the year 1883, and in each of the next succeeding twelve years, 
the sum of one-half of one cent on each one hundred dollars' 
worth of taxable property of this State, which money when 
collected and paid into the State Treasury in each of the years 
named in this act, shall he to the credit of the fund to be known 
as the permanent endowment fund of the Indiana University. 

§111. Application of Fund.— Whenever, after the first day of May , 
1884, there shall have been paid into the State treasury a sum 
of said permanent endowment fund sufficient to pay off any of 
the interest-bearing indebtedness of the State, it shall be the 
duty of the Treasurer of State to pay off and cancel such in- 
debtedness, and it shall be the duty of said Treasurer of State 
to continue to pay off and cancel such interest-bearing indebted- 
ness which may be due, or which, by the terms of the contract 
creating such indebtedness, may be paid off, whenever there is 
a sufficient sum of said permanent endowment fund in the State 
treasury to pay off the same out of said permanent endowment 
fund. 

§112. Bond. — It shall be the duty of the Treasurer of State, 
immediately after paying off any of the interest-bearing in- 
debtedness of the State, as provided for in section 2 of this act, 
to make and to issue to the trustees of said University and to 
their successors in office a non-negotiable bond of the State in 
an amount equal to the sum drawn from said permanent endow- 
ment fund and used in such payment. Said nonnegotiable bond 
shall be signed by the Governor and Treasurer of State, and 
attested by the Secretary of State and the seal of the State, and 
may be payable in fifty years after date, at the option of the 
State, and said bond shall bear 5 per cent, interest from date 
until paid, which interest shall be paid semi-annually on the 
first daj^s of May and November of each year, and the same 
shall be applied to the current and extraordinary expenses of 
said University and be paid to the trustees thereof under the 
same rules and regulations as is now required by law in the 
payment of the revenues of said University. The non-negotiable 
bonds provided for in this act, when executed, shall remain in 
the custody of the Treasurer of State. 



COMPILATION OF LAWS 29 

§ 1 13. Loan of Permanent Endowment Fund.— By Section 4 of the 
act of Marcli 3, 1883, it was provided that so much of the 
permanent endowment fund as shall not at any time be ab- 
sorbed by the non-negotiable bonds of the State, shall be loaned 
by the Auditor of State at 6 per centum interests payable annu- 
ally in advance, on real estate security; and in making loans 
and disbursing interest collected, the Ti'easurer of State and the 
Auditor of State shall be governed by the law now in force 
regulating the manner of making loans of the University funds 
and paying out interest collected except as otherwise provided 
in this act. In 1897, the General Assembly enacted a law by 
virtue of which the endowment fund was distributed to the 
various counties and is to be loaned in the same manner as the 
common school fund. The provisions of the law of 1897 are 
as follows: 

DistriMtion.— Section 1. The Treasurer of State shall proceed 
at once to collect all outstanding loans belonging to the perma- 
nent endowment fund of the State University, located at Bloom- 
ington, which may be due, and shall collect all other loans be- 
longing to said fund, as fast as they become due, which money, 
together with all other moneys that come into the hands of said 
treasurer, belonging to said fund, shall be immediately appor- 
tioned by the Auditor of State pro rata among the several coun- 
ties in this State, according to population, as ascertained by the 
enumeration taken and made in the year 1895, for legislative 
apportionment, and that the Treasurer of State, immediately 
thereafter, pay the same to the several county treasurers, ac- 
cording to said apportionment made by the said Auditor of State, 
and take their receipts therefor; and semi-annually on the first 
day of May and November of each year, the said Auditor of 
State shall apportion the amount collected during the preceding- 
six months, and the Treasurer of State shall pay the same to 
the respective county treasurers as above provided. 

Loa7i of Funds in Counties.— Sec. 2. The said moneys so dis- 
tributed and paid to said counties, as provided by Section 1 of 
this act, shall be loaned by the auditors of the respective coun- 
ties in the same manner and on the same terms and conditions 
and under the same restrictions, subject to the same limitations, 
and said loans shall be asrain collected from the borrower, as the 



30 INDIANA UNIVERSITY 

common school funds are now loaned and collected. And the said' 
several counties shall be liable in the same manner and to the 
same extent, for the principal and interest of said fund, and for 
the payment of the same, as they are now liable for the pay- 
ment of the interest and principal of the common school funds. 

Auditor of State not to Loan.— Sec. 3. The Auditor of State is 
hereby prohibited from making any further loans from said 
fund, and all money in his hands belonging thereto shall be by 
the Auditor of State apportioned, and by the Treasurer of State 
paid to the several counties where apportionment is made as 
provided in Section 1 of this act. 

Interest Paid by Counties.— Sec. 4. The several counties of this 
State shall pay the interest on said fund to the Treasurer of 
State at the same time and in the same manner as interest is 
now paid on the common school fund, and said Treasurer of 
State shall at once pay the same to the trustees of the Indiana 
University, and take proper receipts therefor. 

(Acts 1897, p. 11; Burns R. S. 1901, §§6116a-6116d.) 

§114. Mort§fa§:e.— By the law of 1883, it was provided that 
it shall be the duty of the Auditor of State to make a complete 
record of every mortgage and note executed on account of any 
loan from said permanent endowment fund, in a book to be 
kept in his office for that purpose, and on payment of any loan 
to said fund, said auditor shall enter a record of satisfaction in 
full on the margin of the record of the mortgage in his office 
and sign the same with his name; and he shall also, in like 
manner, enter satisfaction in full on the face of the mortgage; 
which mortgage, when presented by the mortgagor or any per- 
son holding title under him, to the recorder of the county where- 
in the land mortgaged is situated, shall authorize the recorder 
of said x!ounty to copy such entry on the record in his office. 

Inasmuch as the law which authorized the Auditor of State to 
loan the endowment fund has been repealed, the provision just 
set out is likewise repealed by implication and the Auditor of 
State is no longer required to perform the duties therein set forth. 

§115. State Preferred Borrower.— If at any time hereafter the 
State shall need the loan of any part, or of all, of said per- 
manent endowment fun(J, the State shall be a preferred borrower 



COMPILATION OF LAWS 31 

of SO much of said fund as shall not be loaned at the time. 
But it shall be the duty of the Treasurer of State to cause to be 
executed, as an evidence of any of sucli loan, a non-negotiable 
bond of the State for the amount so borrowed, in like manner as 
is provided in Section 3 of this act: Provided, If any time here- 
after the said Indiana University shaU be consolidated with any 
other educational institution or institutions of the State, or shall 
be removed from its present location for any cause whatever, the 
fund raised under the provisions of this act shall be held and 
be used for the benefit of such institution, as consolidated or 
changed, notwithstanding such change or consolidation when- 
ever so removed or consolidated: Provided further, That after 
said date no further appropriation shall be made to said Uni- 
versity. (Act approved March 3, 1883, §§1-6; Bnrns R. S. 1901, 
§§6161-6166.) 

§116. Sacredness of Endowment Fund. — It has been decided 
by the supreme court of the State that the endowment fund of 
the University (and the ruling doubtless applies to the other 
funds also) is entitled to all the constitutional and statutory pro- 
tection accorded to the school fund, the course of legislation 
showing an intent to make the University and the public schools 
a part of the same system. Under this decision endowment fund 
mortgages have priority over all liens created subsequent to the 
execution of such mortgages, and a lien for taxes which accrued 
after the execution of any such mortgage is postponed in priority 
to the lien created by the mortgage. The purchaser of the real 
estate on the foreclosure of such a mortgage takes the land free 
from the claim of purchasers for taxes assessed after the execu- 
tion of the mortgage, or the lien of special assessments made 
after such time. (Fisher v. Brower, Indiana Supreme Court, June 
24, 1902-see 64 N. E. Rep. 576.) 

THE FRACTION-OF-A->nLL FUND 

§ 1 1?. Taxes Assessed and Levied for This Fund— Apportionment.— 

The General Assembly, in 1895, passed what is generally de- 
nominated the fraction-of-a-mill fund. The law creatfng this 
fund provided that a levy should be made upon the taxable 
property of Indiana in 1895, and each subsequent year, of a 



32 INDIANA UNIVERSITY 

certain fraction of a mill upon eacli one hundi'ed dollars' worth 
of such property which should go to the benefit of the State Uni- 
versity and Purdue University, as provided in the act. The 
original act was in two sections. It was amended in 1899 and 
again in 1903. The following is a copy of such act as amended 
in 1903. The first section is given in the section next following: 

§ 118. Taxes for Educational Institutions.— Apportionment.— There 
shall be assessed and levied upon the taxable property of the 
State of Indiana, in the year 1903, and in each year thereafter, 
for the use and benefit of the Indiana University, Purdue Univer- 
sity and the Indiana State Normal School, to be apportioned as 
hereinafter in this act provided, a tax of two and three-fourths 
cents on every one hundred dollars of taxable property in Indi- 
ana, to be levied, assessed, collected and paid into the treasury 
of the State of Indiana, in lilie manner as other State taxes are 
levied, assessed, collected and paid. And so much of the pro- 
ceeds of said levy as may be in the State treasury oa the first day 
of July and the first day of January of each year shall imme- 
diately thereafter be paid over to the board of trustees of the 
respective institutions for which the tax was levied, to be dis- 
tributed and apportioned among them severally upon the basis as 
follows, viz. : To the said trustees of Indiana University upon 
the basis of four-elevenths (4-11) of the total proceeds of this 
tax; to the trustees of Purdue University upon the basis of four- 
elevenths (4-11) of the total proceeds of this tax; and to the 
trustees of the Indiana State Normal School upon the basis of 
three-elevenths (3-11) of the total proceeds of this tax, and the 
Auditor of State of Indiana is hereby directed to draw proper 
warrants therefor, and on or before the tenth day of January 
and July of each year the trustees of the Indiana University, 
Purdue University'' and the Indiana State Normal School shall 
file, or caused to be filed, with the Auditor of State, a sworn 
and itemized statement of their respective receipts from all 
sources, including all tuition fees, and other revenues derived 
from students, contingent fees, interest from permanent endow- 
ment fund, ^he proceeds of the tax provided in this act, and all 
other receipts of every kind, character and description, together 
with a full, detailed, itemized and sworn statement of their ex- 
penditures for all purposes, including maintenance and perma- 



COMPILATION OF LAWS 33 

iient improvements, the amount paid each member of the faculty, 
trustees, all other officers of the institution, and file with such 
report a copy of the receipts for each separate item of the ex- 
penditures, it being the intention of this act that the reports 
hereinbefore provided for shall set out in full and detail all ex- 
penditures of every l5;ind, character, and description; and from 
and after this act is in force it shall be unlawful for the Audi- 
tor of State to issue any warrant to the Indiana University, 
Purdue University, and the Indiana State Normal School until 
they have filed their reports as required by this act. (As 
amended in 1903, Acts 1903, p. 155, §1.) 

§ 119. Not to Affect Permanent Endowment.— The second section, 
as amended in 1903, reads as follows: Nothing in this act shall 
affect in any way any permanent fund that may belong to, or 
may have been appropriated for, either the Indiana University or 
Purdue University named in this act. (Acts 1903, p. 155, §2.) 

§120. Appropriations of 186<r,— Before the passage of the law 
providing for the permanent endowment fund, appropriations 
were made, from time to time, in specific sums, providing for the 
application of the sums so appropriated to the expenses of the 
University. The amount thus appropriated by the General As- 
sembly of 1867 was $8,000 annually, to be paid semi-annually 
from and after March 31, 1867. (Acts 1867, p. 20; Burns R. S. 
1901, §6159.) 

§121. Annual Appropriation Provided in 18T3.— The General As- 
sembly provided for an annual aiDpropriation out of the State 
treasury in the year 1873, in addition to the amount appropriated 
in 1867, to be paid semi-annually, commencing in September, 

1872. The amount thus appropriated was $15,000 per year. (Acts 

1873, p. 17; Burns R. S. 1891, §6160.) 

§ 122. Specific Appropriations for Maintenance Discontinued.— The 

permanent endowment and fractional mill funds have taken the 
place of specific appropriations, and the annual appropriations 
provided for in the two foregoing sections are no longer available. 
Specific appropriations are still made, however, from time to time, 
but these are for the erection or repairs of buildings and equip- 
ments that may be found necessary, and not for maintenance 
purposes. 



34 INDIANA UNIVEBSITY 

ADDITIONAL MEASURES ADOPTED FOR THE LOAN AND COLLECTION OF 

THE UNIVERSITY FUND AND ENDOWMENT FUND — 

LEGISLATION OF 1903 

§ 123. Auditor of State, How to Proceed— Insurance.— The Gen- 
eral Assembly of 1903 adopted the following additional measure 
as to the loan and collection of the funds of the University: 
The sum loaned shall not exceed one-half the appraised value of 
the premises proposed to be mortgaged. In all cases where per- 
ishable improvements upon real estate are accepted as a part of 
the security for any such loan, the real estate and the perishable 
improvements thereon shall be appraised separately, and there 
shall be procured by the borrower a policy, or policies, of fire 
and tornado insurance issued by a company, or companies, duly 
authorized by the Auditor of State to do business in this State, 
and such policy or policies shall contain the union mortgage 
clause in favor of the county wherein such loan is made, and 
such borrower shall deliver such policy, or policies, of insurance 
to the auditor of such county and shall keep such improvements 
insured in the manner aforesaid during the time that such loan is 
in force. The mortgage securing such loan shall continue the 
provision that such insurance shall be procured and be kept in 
force as above provided. Upon the failure of such borrower to 
do so, the auditor shall procure such insurance and the premium 
or premiums thereof shall become a part of the debt secured by 
said mortgage, bearing the same rate of Interest as the mort- 
gage debt, and the further provision that such mortgage may, 
upon such default by such borrower, be foreclosed. Such in- 
surance shall in all cases be for a sum equivalent to 66% per 
cent, of the appraised value of such portion of said perishable 
improvements as is accepted as security for any such loan: Pro- 
vided, That when such premises are situated in a county other 
than that to which such fund may belong, the sum loaned thereon 
shall not exceed 40 per cent, of the appraised value of such 
premises. (Act approved February 28, 1903; Acts 1903, p. 119.) 

§ 124. Personal Judgfment Agfainst Borrower.— The General As- 
sembly of 1903, by the enactment into law of House Bill No. 250, 
also provided that in all cases where the Auditor of State has 
made loans from the University fund, college fund or permanent 



COMPILATION OF LAWS 35 

-endowment fund, which loans were secured by mortgage upon 
real estate and when the mortgaged premises have been or may 
become forfeited by the State for nonpayment of the amount 
due thereon, or have been or may be bid in for the benefit of such 
respective funds, or where the mortgaged premises when sold 
according to law after having been forfeited or bid in by the 
Auditor of State have failed or shall fail to sell for a sum sufll- 
cient to satisfy the principal and interest of the loan made and 
the damage accrued by reason of such failure and costs, the 
auditor shall bring suit on the note executed by the mortgagor 
for the deficiency, for which deficiency the mortgagor shall be 
liable, and when judgment shall be rendered thereon no appraise- 
ment of property shall be allowed on execution issued on such 
judgment. (Acts 1903, pp. 142, 143.) 

PRO^TiSIONS FOR DONATIONS BY COUNTIES, CITIES OR TOWNS 

§ 125. Aid to be Voted on Petition of Freeholders and Taxpayers. — 
Whenever fifty freeholders and taxpayers of any county in this 
State or twenty-five freeholders of any city, town or township 
in this State in which any State University may be situate, shall 
petition the board of commissioners of such county, in the case of 
a county or township, or the common council, in the case of a 
city, or the board of trustees of a town in the case of a town, 
to make a donation to such State University, in any sum not 
exceeding $25,000, as to such county or city; $10,000, as to said 
township or town, it shall be lawful for such board of commis- 
sioners, on behalf of such county or township, or the common 
council on behalf of such city, or board of trustees on behalf of 
such town, to make such donation, not exceeding the amount so 
named in such petition, and to enter in their respective records 
the proper order, ordinance, or resolution therefor, and which 
shall be a sufficient justification for the proper ofiacer to draw 
his warrant therefor. 

§ 126. Agfreements and Conditions of Donation.— Such board of 
county commissioners, common council of such city, and board of 
trustees of such town, are hereby authorized for and on behalf 
of their respective corporations, to make all proper agreements 
with any such State University, with reference to the purpose 



36 INDIANA UNIVERSITY 

for which such donations shall be used; and the terms and con- 
ditions on which donated and accepted, and when so made and 
such donation accepted shall be binding on such State University 
accepting the same. 

§ 12f . Bonds, Issue, Sale.— For the purpose of raising the money 
with which to make such donation, the board of commissioners 
of such county are hereby authorized to issue the bonds of such 
county, or township, and such common council and board of 
trustees of such town, the bonds of such city, or town, respec- 
tively, none of which shall bear a higher rate of interest than 
6 per cent., payable annually, nor run a longer time than six 
years from their date of issue, and shall not be sold for less 
than their face value, and accrued interest 

(Acts 1897, p. 42; Burns R. S. 1901, §§6166d-6166g.) 

[escheated lands to go to INDIANA UNIVERSITY 

§ 128. Escheated Estates, When Not to he Sold.— Another meas- 
ure adopted by the Legislature of 1903 affecting the University 
relates to the setting aside of certain escheated lands for educa- 
tional purposes. It is as follows: In all cases where lands 
located in Lawrence or Monroe County have escheated, or here- 
after shall escheat to the State for want of heirs or kindred en- 
titled to the inheritance, such lands shall not be sold by the board 
of commissioners of the county w^here such estate is situated, 
but the title of all of such lands shall be and remain in the 
State of Indiana, and such lands shall be devoted to educational 
purposes. 

§129. Control and Mana§:ement— Indiana University Trustees.— 
The control and management of all such lands shall be vested 
in the trustees of Indiana University, and such lands may be 
used by said trustees for any proper educational purposes. 

§ 130. Uses. — Said board of trustees may in its discretion set 
off any portion of such grounds to the use of the State Board of 
Forestry or to that of Purdue University, or to any other educa- 
tional or scientific Institution of the State. 

(Act approved March 3, 1903; Acts 1903, p. 152.) 



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